Prioritisation will be necessary in next electoral period

Minister for Finance Magdalena Andersson today presented the latest economic forecast from the Ministry of Finance and the focus of the budget during the Government’s discussions at Harpsund.

"Sweden is in an entirely different position compared with four years ago. Unemployment has been pushed back, with 300 000 more people in work, we have good growth, and major deficits have been turned into surpluses. We have saved SEK 166 billion and paid off national debt, which will reach its lowest level this year since 1977. We have equipped ourselves – both to encounter a weaker situation and to tackle the major tasks that lie ahead. In the next electoral period we will have to prioritise. Dealing with climate change and the fact that Sweden will have 300 000 more older people over the next decade will require major resources. So we cannot afford major tax cuts for those who earn the most," says Minister for Finance Ms Andersson.

Strengthened economy and stable public finances

Compared with the last forecast, growth for the current year has been revised upwards by 0.3 percentage points to 2.9 per cent, primarily because GDP growth turned out stronger than expected in the second quarter.

Unemployment is still expected to fall further during the forecast period, to 6.1 per cent. The employment rate remains at its highest level since the early 1990s, and both the employment rate and labour force participation have been revised upwards since the last forecast. The proportion of people who are dependent on sickness insurance, unemployment insurance, introduction benefit or income support is the lowest since 1981 and is expected to continue to fall.

General government net lending has been revised upwards by approximately SEK 10 billion, both for this year and next year.

Focus of the budget for 2019

"In the budget for 2018 we included major reforms, which will be further stepped up in 2019. We continue to take steps to abolish the unfair tax on pensions, and we are making major climate investments and investing SEK 1 billion to reduce disparities in schools," concludes Ms Andersson.

Contact

Gösta Brunnander
Press Secretary to Minister for Finance Magdalena Andersson
Phone (switchboard) +46 8 405 10 00
Mobile +46 (0)72-544 28 66
email to Gösta Brunnander, via senior registry clerk
Isabel Lundin
Press Secretary to Minister for Finance Magdalena Andersson
Phone (switchboard) +46 8 405 10 00
Mobile +46 (0)76-296 46 38
email to Isabel Lundin, via senior registry clerk
Thomas Bergman
Head of the Macroeconomic Forecasting Division
Phone +46 8 405 47 18
email to Thomas Bergman, via senior registry clerk
Thomas G Pettersson
Head of the Public Finances Division
Phone + 46 73 985 08 37
email to Thomas G Pettersson, via senior registry clerk